One more hearing before council votes on new utility rates

 

April 23, 2017



Not much new information came out during the second public hearing on increased utility rates Monday, April 17. The Alva Utility Authority held the first hearing April 11. Mayor Kelly Parker did agree to schedule one more public hearing before the new adjusted rates are brought to the city council for approval.

Monday’s hearing followed about an hour and a half of council and authority meetings. Some participants arrived later while others sat through it all.

The City of Alva is proposing two possibilities. The first lowers the water usage qualifying for the minimum charge from 5,000 to 1,000 gallons with incremental rates for levels above the minimum. The second is a flat rate with a basic charge plus one rate for water amounts above the minimum 1,000 gallons. Sewer and sanitation rates are also increasing.

Mayor Parker opened the hearing saying they hoped to “garner more feedback here and have enough information to proceed.” He explained how tiered water rates are figured, referring to posters on the walls and a handout.


Under the proposal, the minimum charge is $19.22 for water usage up to 1,000 gallons. If someone used 5,287 gallons, he would pay $19.22 for the first 1,000 plus $1.29 per thousand prorated (or .00129 per gallon) times the remaining 4,287 gallons for a total of $24.75 (19.22 + 5.53).

Explaining the reason for the rate increase, Parker said last year the city adjusted the water rate structure because the Oklahoma Water Resources Board (OWRB) criticized Alva rates as being regressive. The more water used, the less the per gallon charge. So rates were adjusted to be progressive with more cost per gallon with higher water usage. This encourages water conservation.


This year the city went back to OWRB to apply for a grant, only to be told that now the rates were “not high enough to support our water structure,” said Parker. Alva needs to qualify for grants to improve and replace aging water infrastructure.

Parker said the last hearing provided “a lot of public input” and said it was “greatly appreciated.”

The mayor said Alva is also seeking outside input by submitting the rate proposal to a non-profit group in northeast Oklahoma for rate analysis. They also sent the proposed rate to OWRB to see if they approve.

Public Comments

This second hearing attracted only a few participants. Those speaking were Jay Herning, Forrest Golbek, Jim Scribner, Tom Crenshaw and Matt McGuire.


Herning, who had a lot of questions at the earlier hearing, said he had a couple more. He said it sounds like OWRB is dictating Alva’s rates. He also asked if the city would consider raising the minimum gallons. “That’s the one thing that sticks in my craw.”

Golbek talked about the impact of increased rates on those like himself living on fixed incomes. He said he was at his “budget limit now.” Parker replied that they figured the average increase per month to customers would be $6 to $7. “Our goal is to do what’s right for the community,” he stated.

At the last public hearing, Tisha Stewart suggested cutting residential trash pickup from twice to once a week as a money-saving measure. Golbek said he liked that idea. For some people, once every two weeks would even work.


Scribner asked how many people were using 3,000 gallons or less per month, suggesting that might be a more reasonable minimum. At the earlier meeting, Parker said 20 percent of water customers used 1,000 gallons or less per month. He apologized saying that was incorrect. Actually 20 percent of customers use 2,000 gallons or less per month. He could not provide a figure for the 3,000 gallon level.

Scribner asked if bulk water rates were being raised, saying those people might be getting a bargain. Parker directed his attention to the bottom of the water chart where those rate increases were listed.

Scribner asked for more explanation of the timing on changes made to proposed rates and approval by the city council. Parker said in the next week or so a finance committee meeting would be scheduled to rework the rates. He said those rates would be publicized at least a week before the next council meeting on May 15. Scribner said he really wanted another public hearing on the adjusted rate proposal. After a brief discussion, Parker agreed. A public hearing will be scheduled before the rates appear on the city council agenda for approval.


Crenshaw’s questions were mainly about the city’s water projects. He asked what was planned for the 14th Street water tower which is used only for storage. Parker said that was phase two of the plan.

Golbek, who missed the April 11 meeting, commented about the water sprinklers at NWOSU. He asked who was paying for all those gallons of water. Parker again stated that NWOSU is billed for every gallon of water they use.


McGuire spoke up in defense of NWOSU, “We have one of the most beautiful colleges in the state.” He explained he works for the university and said the beauty of the campus helps to attract students who then spend money in Alva and help support the economy.

McGuire said he understands that water rates have to go up, but “we don’t like drastic.” He suggested the city consider raising the rates a little each year instead.

Utility board member Daniel Winters said they purposely planned to raise rates once instead of over a five year period to avoid public hearings and complaints every year.

Everyone ran out of questions, so the hearing concluded.

Other Business

At the start of the Alva Utility Authority (AUA) meeting, the board members voted approval of minutes from the March meeting and payment of claims totaling $139,604.41 plus payroll expenses of $63,671.28.


City Business Manager Joe Don Dunham presented a list of people who owe the city money to be written off as bad debt. He said this was an accounting procedure only, and the city will continue to make an effort to collect the $49,091.74. He said the last time this accounting function occurred was in May 2014. The board approved the measure.

The AUA meeting was recessed so the council/board members could open the Alva Economic Development Authority meeting. As that body, they approved claims of $62,486.78, payroll expenses of $14,137.45 and minutes of the last meeting.

After that meeting adjourned, Parker opened the AUA meeting to hold the public hearing on utility rates as the final action of the evening.

 

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